The basis of Mughal economy was land. Land tax was the main source of the government’s income. Because of that to ensure that taxes came in, the government appointed a number of officials to assess the land tax and to collect it. The head of the revenue department (Daftar) was Diwan. He supervised the economic system of the Empire. To help the Diwan there was an Amil Guzar (Revenue Collector) and many other officials. These officials went around the villages to ensure that taxes came to the Treasury. They became a Strong power in formulating agricultural relationships with the government.

Before fixing the tax, the state collected all the information regarding the agricultural lands and their products.

There were two stages in the tax system of the Mughals:

Fixing Tax and its actual collection. The first step in the land revenue system is the determination of the amount of tax to be given by the farmer. This amount is called Jama. The collection of the tax is the second stage. The amount collected is known as ‘Hasil’.

Farmers could pay their tax in cash or in goods. The government preferred cash. The government had tried to raise the tax to the maximum. But often it could not collect the fixed tax. Regional circumstances often prevented the government from collecting the entire tax.